The Actual Use
Where the rubber meets the road - Real-life exapmples
(Also, see Credit scores in mortgage lending underwriting)
- California Housing Finance Agency: "A minimum score of 620, or a score approved by Desktop Underwriter/Loan Prospector (DU/LP) is required to form the basis of eligibility for CalHFA conventional loan programs and mortgage insurance." (2006) (
Rates)
- Empire Mortgage Silver Series Rate Sheet, 5/6/06
- Freemont Investment & Loan Wholesale Rate Sheet, 8/2/06 (dead link as of 10/28/07, was at http://www.1800fremont.com/wholesale/rates/WesternRS.pdf)
- Current Rate Sheet, Goloan Mortgage Banking
- Lending Tree: "On the basic FICO scale, a score below 620 is generally considered sub-prime, 620 to 650 is good (although you may still be viewed as a higher risk candidate) and above 720 is seen as excellent credit."
See the credit score distribution and default rates (620 is in the 31% delinquency category, while 720-- which is even below the 723 median average-- is in the 5% category!), and Fair Isaac's comment: "But no score says whether a specific individual will be a “good” or “bad” customer." Also, What is a good credit score?
- Tejas Scion: "zone 4 Fico 620 and Under" (update, 10/27/07: "zone 4 Fico 649 - 630")
- Freddie Mac: Selecting an Indicator Score - "... over 660" (now a dead link; was linked to http://www.freddiemac.com/learn-uw/automate/customer-news/pdf/indicator.pdf)
Now, see the Freddie Mac document "Selection and Use of Credit Scores," April, 2005. (8/06)
(10/27/07, now a dead link, was at http://www.freddiemac.com/learn-uw/automate/customer-news/pdf/indicator.pdf)
Now, see http://www.freddiemac.com/learn/uw/pdfs/qrefs/credit_scores.pdf
- "A credit score of 620 is the minimum score needed to get the best interest rate for your mortgage loan."
(Now an inactive domain; was linked to http://www.hometownmtg.com/html/articles.htm, 8/06)
- PIGGY-BACK SECOND MORTGAGE
(now an inactive link; was linked to http://webserver.headmort.com/lpm/HH-AQ-32.TXT, 8/06)
- Rate Sheet
(now an inactive link; was inked to http://www.downpayment.com/rates.html, 8/06)
- 100% Financing (a shadow of its former self; link was to http://www.mortgageok.com/expandprem.html, now just a bunch of ads, 8/06)
- Credit Scores Explained (was a link to http://207.240.88.120/credit_scoring.htm; domain no longer exists, 8/06)
- FHA FNMA RFC Product RFC Expanded RFC Alternate RFC Core Indy Mac First Nationwide - ("A1 Credit Quality" = "720+ Credit Score") (was a link to http://www.crosslandmortgage-ny.com/rfccore.html; now, just a lot of ads, 8/06)
- Irwin Mortgage Corporation -- News Letter - "... a borrower must have... a credit score in excess of 620. The eligible loan amount is determined by a borrower's credit score... " (now, just a domain full of ads; was a link to http://www.inlandmortgage.com/news.htm, 8/06)
- Credit Scores and How They Affect You (now a dead link; was to http://www.paramountfinancial.com/creditscore.html#quest4; 8/06)
- Fannie Mae FIXED RATE MORTGAGES (now a dead link; was to http://www.monument.com/pdfnma2.htm; 8/06)
- What's New (now a dead link, was to http://www.1stcaliber.com/ssituations.htm; 8/06)
- Credit Grading (was to http://www.1stbuyer.com/credgrad.htm, now just a bunch of ads; 8/06)
- MortgageBase Credit and Income Guidelines
- Beacon Pricing Guidelines (dead domain, was a link to http://www.ourtownusa.net/~slrlthr/beaconpricingguidelines.html>
- U.S. Mortgage Corporation:Approval-Qualify (dead link, was to http://www.usmtg.com/usmc_approval_qualify.htm; 8/06)
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